Economists and experts said that the petrochemical sector in Saudi Arabia needed to shift from manufacturing primary products to intermediate and advanced ones,if companies want to survive in domestic and international markets.
They said that otherwise,they would face great challenges if Saudi Aramco decided to raise the price of gas,which is now sold to them at a low price.The petrochemical sector has been growing steadily and contributes to 15%of the gross domestic product.
Mr Ahmed Al-Ohali CEO of Saudi International Petrochemical Company said that the petrochemical industry shifted its operations from basic chemical products to specialized manufacturing that is more competitive in global markets.
According to Mr Abdul Rahman Sultan,a Saudi economist,the petrochemical sector has a primary role in supporting the national economy,as it achieves the added value to the economy.He said that one flaw of this sector is that the bulk of these products are preliminary chemical products,but did not evolve into intermediate or advanced products.This significantly reduced the required feasibility,and the added value to the economy.
Mr Sultan said that Kingdom's intentions to increase its share of primary products to 15%in global markets by 2015,is a serious indicator that Saudi Arabia will continue to manufacture primary products.
He said that"This trend will induce many international companies to leave the market open for Saudi companies,while shifting operation to the production of intermediate and advanced products to take advantage of the cheaper prices of primary products."
